San Diego County supervisors recently approved a compromise to help pay down the government’s $1.2 billion pension debt while still providing health care benefits to its retirees.
San Francisco is beginning to grapple with the same problem. Check out this San Francisco Chronicle story.
The Chronicle says:
In San Francisco’s effort to pay the soaring cost for retiree health benefits, it’s $500,000 down, $4.9 billion to go.
The city, like most local governments and school districts in California, has put aside no money to cover the fast-growing cost of delivering on health care coverage promised to its workers once they hit retirement age.
But in San Francisco, the financial liability hanging over the city is one of the heaviest in the state, thanks in part to the generosity of its employee health care benefits.